Each week, The Elevator Speech summarizes news related to some of the key industry trends, buildings, deals and dealmakers that shaped headlines. Below are articles that caught our attention the week of September 29.
BOMA Chicago Energy Center Hosts Panel on Smart Grid Technology
Members of BOMA/Chicago’s Smart Grid Initiative hosted a panel discussion earlier this week at the BUILDINGChicago/Greening the Heartland conference. Michael Cornicelli, Executive Vice President, T.J. Brookover, Vice President of the BOMA/Chicago Board of Directors, Ron Tabaczynski, Director of Government Affairs and Mike Munson, Metropolitan Energy, discussed how leveraging Smart Grid technology can transform Chicago’s commercial buildings. Click here to read a full recap of the panel.
Hefty Pricetag Despite Looming Anchor Vacancy
A venture of Golub & Co. and an affiliate of New York-based Goldman Sachs Group Inc. have sold 211 W. Monroe to GlenStar Properties LLC for about $58 million, which is approximately 32% percent more than the venture paid for the tower two years ago. The venture purchased the property in 2012 knowing that a major tenant, BMO Harris, would end its 250,000 square foot lease in December 2014. When BMO Harris leaves, the property will be about 82% vacant.
One Prudential Plaza Inks Big Lease
Cision AB, a Swedish public relations software provider, has signed a 49,500 square foot lease at One Prudential Plaza. This space will become the firm’s headquarters in early 2015, where it will house 400 employees. This deal is the largest lease at One Prudential Plaza since a venture of New York-based 601W Cos. and Berkley Properties LLC recapitalized the building in June 2013. One Prudential Plaza recently lost a lease for Integrys Energy Group Inc., leaving the building 42% leased.
John Hancock Acquires Monroe Street Tower
John Hancock Real Estate has acquired 55 W. Monroe St. for $244 million, or approximately $303 per square foot. The building is currently 92% leased to a variety of law firms and financial institutions. The seller of 55 W. Monroe, a venture of Chicago-based Hearn Co. and New York-based Mount Kellett Capital Management L.P., purchased the building in December 2011 for $136 million when it was 32% vacant.
Cook County Adopts New Real Estate Tax Incentive
The Cook County Board of Commissioners has adopted a new commercial real estate tax incentive known as the Class 7c Commercial Urban Relief Eligibility incentive aiming to encourage real estate development in the Chicago region. Class 7c is available to real estate primarily used for commercial purposes (goods and services and also hotel and motel). It joins other more commonly known Cook County incentive classifications, such as 6b (industrial), 7b (commercial) and Class L (landmarks), as well as municipal incentives such as tax increment financing and sales and hotel tax rebates, to expand the tools available to assist projects that would not otherwise be economically feasible. Click here for more information.
What CRE or Chicago news headlines from the past week captured your interest? Leave us a comment and let us know.